Is 'Corporate Records Service' a Scam? What Businesses Need to Know

By Daniel Taylor, Esq. on June 23, 2014 12:23 PM

A company called Corporate Records Service is drawing the ire of consumer protection watchdogs in several states for mailing deceptive solicitations to businesses that officials say are intended to resemble government documents.

Indiana's Director of Consumer Protections calls it a "scam." As she told Lexington, Kentucky's WKYT-TV, Indiana is one of nearly a dozen states to be hit by Corporate Records Service's document deception.

What should small business owners look out for?

Official-Looking Documents Designed to Look Real

Though the exact wording of the solicitation seems to vary by state, in each instance Corporate Records Service mails documents pertaining to a business entity's annual minutes.

These documents are official-looking and suggest that businesses are required to file the documents -- which in Texas were titled "Annual Minutes Records Form" -- and pay a $125 fee to comply with their state's law.

But in fact, as noted by the Texas Secretary of State in a warning to businesses about the scam, Texas businesses are not obligated to file any such statement. In each instance, the return address given is in the state's capital city, adding to the illusion of being official government documents.

Need legal advice on how your small business should operate? Consult with an experienced business attorney about your options.

A U.S. postal inspector adds that those who have questions about purportedly official documents can call their state's attorney general's office or check with the local Better Business Bureau to make sure they are not being scammed.